Validity of the SEPA mandate
The SEPA direct debit mandate is required to authorize the direct debit procedure between the payee (creditor) and the payer (debtor). The debtor can provide the mandate to the creditor in writing or electronically using an electronic document with a secure signature. A direct debit mandate is only valid if it is issued in the form prescribed by EU directives for SEPA core direct debits and SEPA business-to-business direct debits.
Content requirements
The information required by the European Payments Council (EPC) for a SEPA mandate includes the name, address and account information (IBAN and BIC) of the debtor. The Creditor Identifier and the Mandate Reference are also mandatory in addition to the name and address of the creditor. A SEPA direct debit mandate is only valid if it authorizes the creditor to collect payments from the debtor’s account, and it instructs the debtor’s credit institution to honour direct debits. The authorization must be defined in terms of time, for a single, multiple or permanent direct debit authorization. In addition, the reference to the eight-week period for returning the direct debit must be included for the debtor in the case of the SEPA core direct debit. Since it is not possible to return a direct debit after the due date in the case of the SEPA B2B direct debit, this clause does not apply to corporate mandates. Mandates must always be written in the national language of the debtor. If the language is not known to the payee, the mandate can be written in English. Furthermore, a direct debit mandate is only valid if it contains the handwritten signature of the debtor.
Temporal validity
A SEPA direct debit mandate is generally valid for an unlimited period. However, the validity of a direct debit mandate expires as soon as the debtor or the creditor revokes it in writing. If a mandate is not used for 36 months, it automatically expires. This period starts anew with each direct debit and is renewed for 36 months. If the bank does not have a valid mandate for a creditor, the direct debit is rejected until the debtor has issued a new direct debit mandate. However, the banks of the debtors are not obliged to check the 36-month period.
